Almost $3 Trillion Wiped From Negative-Yielding Bonds
- Global bonds have dropped as central banks move to hike rates
- German 10-year bond yields heading for 10th daily increase
This article is for subscribers only.
The global stockpile of negative-yielding bonds has dropped to the lowest level in more than six years -- with almost $3 trillion making the leap back into positive-yield territory in just two days last week -- in one of the most visible indications yet that the era of easy money is coming to an end.
The pool of subzero bonds -- which offer investors a guaranteed loss if held to maturity -- now stands at about $4.9 trillion, the lowest since December 2015, according to Bloomberg index data. In Europe, the amount has cratered 80% since a December 2020 peak to the equivalent of $1.9 trillion, the lowest since September 2015; it was zero in 2014.